A quick explanation – off market effectively means that the property has been transacted without formal exposure and marketing that would normally be associated with selling property.
It is common (but not the norm) and has increased in prominence over recent months as a means of dealing with the effects of the health pandemic, although this is more the case in the major metropolitan markets on the mainland. It has, however, also gained renewed prominence in our market. In reality, it has always been a part of the overall transactions. Generally we advocate that a tailored marketing campaign is the most effective way to maximise price– yes, we all know the phrase “you can’t sell a secret”, so why off market?
Not every client or every property is the same. For some clients, it is not always about price: some people want to preserve a degree of anonymity in the transaction. Some properties may have characteristics that will only appeal to a narrow section of the buyer pool, and others may offer “special value” to a specific buyer such as an adjoining owner or possibly a tenant. For others, the idea of tipping their toe in the water before conducting a formal campaign may offer appeal. Devine Property has experience with all of these scenarios and our agents can tailor a campaign to your needs.
Importantly, we add value to the transaction by providing up to date market advice around pricing. We can also leverage our extensive customer base of qualified buyers, meaning that an off market selling campaign can still attract competition, driving price higher.
An off-market sale can also work well to get prices above expectations by finding a motivated buyer that does not want to be put into competition with others. Recently Marc and Sam Lester achieved a street record in Brighton with an off-market sale. The motivated buyer was matched to the property that was exactly the style and location required for their next home.
Another example was a sale in Glenorchy where the owner, a single older lady, was nervous about going to the open market with large groups coming through open homes due to the coronavirus. We put this property out to our buyer list, which resulted in 14 groups inspecting the property and resulted in an offer being accepted in the first week on market.
Another great result was obtained by showing a property in Claremont prior to formal marketing and receiving an offer $30,000 above our appraisal price.
These examples demonstrate the importance as a buyer to register your interest and requirements with us if you are looking to buy, as not all properties make it to all advertising portals.